Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17,...

 

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Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2024. The units have a list price of $650 each, but Thomas was given a 30% trade discount. The terms of the sale were 3/10, 1/30. Exercise 7-5 (Algo) Parts 1 and 2 Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024, assuming that the gross method of accounting for cash discounts is used. 2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024, assuming that the gross method of accounting for cash discounts is used. Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2024. The units have a list price of $650 each, but Thomas was given a 30% trade discount. The terms of the sale were 3/10, 1/30. Exercise 7-5 (Algo) Parts 1 and 2 Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024, assuming that the gross method of accounting for cash discounts is used. 2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024, assuming that the gross method of accounting for cash discounts is used.

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Tracy Company Journal Entries Gross Method Information Date of Sale November 17 2024 Units Sold 200 ... View the full answer